Motivations for the Introduction of Australian Workplace Agreements

Abstract

This article introduces a typology of the reasons underlying the decision of employers to pursue Australian Workplace Agreements (AWAs), drawing on case-study findings and a review of secondary literature and case law. Three key reasons are identified: to foster positive employee relations; to avoid the influence of unions in the workplace; and, to reduce labour costs. These reasons appear somewhat at odds with the rhetoric surrounding the 1996 federal legislation that introduced AWAs, which stressed the expansion of choice for both employers and employees. The article uses the typology in order to develop a discussion of the varied types of AWAs. Despite the apparent lack of choice for employees in relation to whether their employment is covered by an A WA, it is contended that not all AWAs are used for purposes that are detrimental to employees. However, given the increasing evidence of instances where AWAs are providing detrimental outcomes for employees, there is a clear need for legislative reform of the AWA provisions.